Are first home buyers still buying? It’s the most common question people are asking us at the moment.
In May it seemed like they”d run out of steam and we might have seen the last rush. The maroon line on the graph below shows the total grants to Queenslanders each month and you’ll see that June kicked back up again. Maybe with more job confidence, buyers lined up for their $14,000 from the government in bigger numbers than ever. The First Home Owners Grant has cost taxpayers $13billion since the October introduction of the boost.
With reasonably tough bank criteria and some conservative valuations going on, we’re surprised the run has continued as long as it has. The grant has pulled forward an enormous amount of first home demand. The graph does show the lines flattening, Queensland more so than other states, and the upcoming release of July stats will give us an update on their appetite.
Our view from the market is that sales volumes are steady as investors are taking up the slack, with first home buyers slowly easing in number.